NONCONTROLLING INTERESTS

3 Months Ended

Mar. 31, 2026

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS

NOTE 14—NONCONTROLLING INTERESTS

The Company’s noncontrolling interests fall into two categories as follows:

●

Noncontrolling interests attributable to joint ventures formed for water-related services.

●

Noncontrolling interests attributable to holders of Class B common stock.


		As of			As of
		March 31, 2026			December 31, 2025

		(in thousands)
Noncontrolling interests attributable to joint ventures formed for water-related services		$	(3,063)		$	(2,275)
Noncontrolling interests attributable to holders of Class B common stock			131,215			123,726
Total noncontrolling interests		$	128,152		$	121,451

For all periods presented, there were changes in Select Inc.’s ownership interest in SES Holdings. The effects of the changes in Select Inc.’s ownership interest in SES Holdings are as follows:


		Three months ended March 31,
		2026			2025

		(in thousands)
Net income attributable to Select Water Solutions, Inc.		$	8,606		$	8,239
Transfers from noncontrolling interests:
Decrease in additional paid-in capital from reallocation to Class B holders in connection with underwritten offering			(8,289)			—
Increase in additional paid-in capital as a result of restricted stock issuance, net of forfeitures			781			768
Increase in additional paid-in capital as a result of vested PSUs			530			406
Increase in additional paid-in capital as a result of the repurchase of SES Holdings LLC Units			674			502
Change to equity from net income attributable to Select Water Solutions, Inc. and transfers from noncontrolling interests		$	2,302		$	9,915

Variable Interest Entity (“VIE”)

Noncontrolling interests deficit of $3.0 million as of March 31, 2026, relate to the Company’s approximate 50% ownership in a consolidated subsidiary formed in 2022 to provide water-related services in support of wildfire response efforts. The entity is considered a VIE and has been consolidated since formation, as the Company is deemed the primary beneficiary. In addition to its equity contributions, the Company had an outstanding loan balance of $4.5 million due from the subsidiary and an intercompany receivable of $3.0 million as of March 31, 2026; both amounts are eliminated in consolidation.

While multiple partners contributed capital to the subsidiary, the Company provided approximately 50% of the total equity and voluntarily extended incremental funding despite no contractual obligation to do so. This discretionary financial support reinforces the Company’s ongoing involvement with the VIE and supports the conclusion that the Company is the primary beneficiary, as it reflects a demonstrated willingness to provide financial resources necessary to sustain the subsidiary’s operations. Since inception, the consolidated subsidiary has been included within the Company’s Water Services segment.